Optimus Funds Invest 98% in Private Bonds

520 Billion Won Redemption Suspension Seems Inevitable

Victims of the Optimus Fund NH Investment & Securities held a protest rally on the 20th in front of the National Agricultural Cooperative Federation in Jung-gu, Seoul, demanding compensation for damages caused by the Optimus Fund. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Ji-hwan Park] The CEO of Optimus Asset Management was found to have embezzled fund money and invested it in stocks under his personal name. After deceiving investors by claiming to invest in public institution sales bonds, the funds were actually used for risky asset investments and fund recycling, leading to an expected increase in the size of redemption-delayed funds to 520 billion KRW.

On the 23rd, the Financial Supervisory Service (FSS) announced the interim inspection results regarding Optimus Asset Management. According to the FSS, the Optimus fund did not actually invest in public institution sales bonds as stated in the investment proposal, but instead used the funds to invest in private bonds of issuers involved in real estate and for fund recycling among funds.

The assets included in the 46 funds managed by Optimus Asset Management amounted to 523.5 billion KRW. Although the fund claimed to invest in stable assets, 98% of the fund money was invested in private bonds of unlisted companies managed by Optimus executives. The investment amounts by company were CPNS (205.3 billion KRW), Art Paradise (203.1 billion KRW), Rafique (40.2 billion KRW), and Daebu DK AMC (22.9 billion KRW), among others.

There were also indications of embezzlement by key figures at Optimus. CEO Kim Jae-hyun, who is currently detained, used several tens of billions of won from the fund money for stock and futures options trading through personal accounts. Optimus Asset Management also obstructed the inspection by submitting false documents and concealing information.

This content was produced with the assistance of AI translation services.